KredX aims to lend Rs 1,500 cr working capital to MSMEs ahead of festive season
New Delhi, June 25 (KNN) To cater to the financial needs of MSMEs ahead of the upcoming festive season, KerdX a supply chain finance platform intents to disburse Rs 1,500 crore in working capital.
A higher credit demand from e-commerce and logistics sector is expected by the platform including travel, entertainment and D2C brands this year.
In the 2021 festive season, KredX disbursed an additional Rs 554 crore in working capital to about 450 MSME players.
In the last season there was a 300 per cent credit demand rise in segments such as fashion, appliances, food & beverages and entertainment.
According to a KredX study, e-commerce MSMEs witness about 40-50 per cent of their annual sales during the festive season while logistics MSME players clock about 30-40 per cent of their annual sales during this period.
Such MSMEs require a working capital which ranges from Rs 1-10 crore. However, a huge credit gap exists for e-commerce MSME players and the logistics industry, which is predominantly a capital-intensive sector and incurs high operating costs, the platform said.
During the festive season, out of 63.05 million estimated MSMEs in India, about 71 per cent experience a significant increase in sales, the study stated.
Tier-1 cities such as Bengaluru, Mumbai, Delhi-NCR, Pune, Chennai and Hyderabad see about 57 per cent of the working capital demand.
The remaining 43 per cent of the demand arises from Tier 2 and 3 cities with Nasik, Guwahati, Coimbatore, Vadodara and Bhopal leading the demand, it added. (KNN Bureau)